Bitcoin Friday — Jun. 21, 2024

Here are my quick, candid thoughts on bitcoin heading into the weekend.

Happy Bitcoin Friday!

What to Do During a Bitcoin Correction

Bitcoin’s down ~5% this week.

Such a correction may not even register on your radar if you’ve been in bitcoin for any significant period of time but it’s a correction none the less.

It’s days like these, where there’s little news impacting markets, that some people sit back and wonder, “should I do something during this correction?”

People tend to want answers. They tend to want to tinker with their holdings. They tend to want to take some kind of action.

Zoom Out

What do I do?

First, I zoom out.

I spoke about bitcoin’s year-to-date performance last week when discussing the performance of the newly issued US spot bitcoin ETFs.

As of today, bitcoin’s +45% YTD. Zooming out to 1-year, it’s +113%. Zooming out to the third bitcoin halving, it’s +980%. It helps to zoom out.

Reminders

Why are you here?

When I say here, I mean in bitcoin.

Why are you using bitcoin? Why are you invested in it? Why do you like it as an inflation hedge or digital gold or other type of asset?

It helps to ask yourself these types of questions when prices are volatile in either direction. Reminders about why you’re here in the first place help you realign with your original thesis or strategy or find out where you might feel differently now.

In my case, I don’t read into short term price action. Bitcoin adoption is still in the early innings. Institutional adoption is just getting started. Bitcoin still has strong critics and… some of its proponents are also not for everyone. It attracts attention and has gotten lots of name recognition but there’s so much education and adoption still to come.